SIGA Technologies, Inc. (NASDAQ:SIGA, SIGA message board) share price continues its upward climb after the company has received $20 million from the National Institute of Allergy and Infectious Disease, a division of the National Institutes of Health, to advance the research and development of ST-246 for a therapeutic indication.
This is good news indeed for a company that has been incurring losses for the past 5 years. SIGA has been running low on cash for the last couple of quarters, so this capital infusion will enable them to continue operating for at least another year.
Still, the current price looks hyped and just waiting there for a correction to occur. There are not yet signs of a big drop, as the volume remains rather heavy, but further upward action isn’t likely to be big. The share price seems unable to break resistance at around $4.11. It might just stall around or drop lower in the nearest future. And if no other good news is going to be announced during that time, the drop is even more likely to occur.
If the stock will however break resistance, a further price target might get as high as $5.50.
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